Good day and welcome to this Tapestry Conference Call. Today’s call is being recorded. Later, you will have the opportunity to ask questions during the question-and-answer session. [Operator Instructions] At this time, for opening remarks and introductions, I would like to turn the call over to the Global Head of Investor Relations, Christina Colone.

Good morning. Thank you for joining us. With me today to discuss our third quarter results as well as our strategies and outlook are Joanne Crevoiserat, Tapestry’s Chief Executive Officer; and Scott Roe, Tapestry’s Chief Financial Officer and Chief Operating Officer. Before we begin, we must point out that this conference call will involve certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act. This includes projections for our business in the current or future quarters or fiscal years. Forward-looking statements are not guarantees and our actual results may differ materially from those expressed or implied in the forward-looking statements. Please refer to our Annual Report on Form 10-K, the press release we issued this morning, and our other filings with the Securities and Exchange Commission for a complete list of risks and other important factors that could impact our future results and performance. Non-GAAP financial measures are included in our comments today and in our presentation slides. For a full reconciliation to corresponding GAAP financial information, please visit our website, www.tapestry.com/investors and then view the earnings release and the presentation posted today. Now, let me outline the speakers and topics for this conference call. Joanne will begin with highlights for Tapestry in each of our brands. Scott will continue with our financial results, capital allocation priorities, and our outlook going forward. Following that, we will hold a question-and-answer session where we will be joined by Todd Kahn, CEO and Brand President of Coach. After Q&A, Joanne will conclude with brief closing remarks. I’d now like to turn it over to Joanne Crevoiserat, Tapestry’s CEO.

Good morning. Thank you, Christina and welcome, everyone. As noted in our press release, our third quarter earnings results outperformed expectations, reflecting an unwavering commitment to disciplined brand building and operational excellence. Our talented global teams continued to advance our long-term initiatives, fueling innovation and consumer connections, while successfully harnessing the power of our customer engagement platform to navigate the dynamic backdrop with focus and agility. Touching on the highlights for the quarter. First, we delivered total revenue in line with the prior year on a constant currency basis, consistent with the low end of our guidance range. These top line results were led by international growth of 3% at constant currency, which included increases of 19% in Europe, 15% in Other Asia, and 2% in Japan, with each region expanding versus the prior year fueled by traction with tourists. In Greater China, as anticipated, sales declined 2% against last year's strong revenge spending. We remain confident in the long-term opportunity in China, despite a more gradual recovery in the region than originally expected, and we continue to invest in our brands, teams, and platforms to support our growth. Finally, in North America, revenue declined 3% compared to last year, amid a challenging consumer backdrop. Importantly, we are continuing to drive a healthy business, underscored by significant gross margin expansion compared to last year and our plan. Second, we continue to put the consumer at the center of everything we do to drive engagement and emotional connections with our brands. In the quarter, we acquired approximately 1.2 million new customers in North America alone, of which over half were Gen Z and millennials, consistent with our strategy to recruit younger consumers to our brands. And we continue to see new customers transact at higher AUR than the balance of our…

Thanks Joanne, and good morning, everyone. As Joanne mentioned, our fiscal Q3 operating income and EPS exceeded expectations, demonstrating our disciplined execution and agility. Importantly, we significantly expanded gross margin and generated strong free cash flow, while investing in future growth drivers for our brands and business. Now, moving to the details of the quarter, beginning with revenue trends on a constant currency basis. Sales were in line with the prior year and at the low end of our guided range. These results were led by 3% growth internationally, driven by gains in Japan, Other Asia, and Europe, even as we anniversaried growth from the prior year. In Japan, sales grew 2%, and in Other Asia, revenue rose 15% with growth in each country in the region, notably Korea and Malaysia. In Europe, growth continued with revenue 19% above last year. And in Greater China, as expected, revenue declined 2% as we lapped last year's resurgence in traffic and spend following the end of COVID-related restrictions in the region. In North America, sales declined 3% compared to the prior year amid a challenging consumer backdrop, though gross margin rose significantly and outperformed plan as we supported brand health. Now touching on revenue by channel for the quarter. Our direct-to-consumer business declined 4% due to declines in North America and Greater China. And in Wholesale, revenue grew over 20%, led by strength in international, supported by our strategic growth initiatives on digital platforms. Moving down the P&L. We delivered the strongest third quarter gross margin in nearly two decades, which was ahead of our expectations and 190 basis points above last year. This year-over-year expansion was driven by the benefit of 100 basis points from lower freight expense, FX tailwinds as well as operational outperformance. SG&A was relatively flat with last…

[Operator Instructions] We'll take our first question from Bob Drbul of Guggenheim.

Hi. Good morning. I was wondering, can you talk a little bit more just about your -- the confidence that you have in your ability to maybe hit the FY 2025 Investor Day EPS target of $5 given I guess, the environment, the backdrop in the second half performance?

Sure. Maybe, Bob, starting with this year, fiscal 2024, I want to acknowledge that we just delivered a strong earnings fee in our third quarter and we reiterated our outlook for fiscal 2024. That's an important step in getting to our fiscal 2025 target. And I would say despite the dynamic environment that we've operated in since sharing those targets three years ago, we remain confident in our ability to deliver the earnings target we set. That really reflects our commitment to brand building and our track record of disciplined execution, both of which are driving our results and hats off to our teams around the world who are maniacally focused on serving our customers with the agility required in this environment. And what gives us confidence, I would say, Coach, our largest brand, is in a position of strength. Expressive luxury is driving new customer acquisition, new and younger customer acquisition and strong engagement globally. We have brand heat and a pipeline of innovation to come, and I am pleased with the execution and the discipline that's allowed us to grow profit even in a challenged environment. And we do have a sense of urgency to drive stronger top line growth across our portfolio. We remain focused on those initiatives and investments that will fuel that long-term growth and we see tremendous runway ahead, but maybe I'll turn it over to Scott to share a little more detail.

Sure, Joanne. Hey, Bob, good morning. I'll just start with reiterating what Joanne said, we are on track to deliver the Investor Day EPS targets, even despite a more modest top line. And how are we doing that through consistently driving gross margin outperformance, coupled with disciplined expense control. And just remember that $5 is impacted by the pause in share repurchases, which we quantified about $0.35 impact and now FX is working against us a bit. But the best evidence that we can achieve this $5 as adjusted going forward is to look at what we're doing right now. We've already done it. Our performance over the last three years we delivered double-digit EPS CAGR even in a challenged market. And look at this year, we're on track to deliver high single-digit earnings growth, even on flat sales in fiscal 2024. And so as you look forward, I'm not providing explicit guidance here, but just to give you some idea of our expectations, we'll continue to focus on the factors in our control. Operational gross margin drivers remain intact. Inventories are well controlled and current. And we're continuing to focus on tightly managing our SG&A, investing in growth drivers, finding leverage throughout the P&L. And I think one of the things you see on display is really we've remade this P&L to a more variable model since 2019 pre-pandemic. And that allows us to invest, but also to flex the act when we see challenging market conditions, such as what we're experiencing right now. So when I put that together, these factors all reinforce our confidence in our ability to achieve that $5 as adjusted that we laid out as a commitment in our Investor Day.

Great. Thank you very much.

We'll move next to Ike Boruchow of Wells Fargo. Your line is open.

Good morning, everyone. Congrats on the quarter in a tough date. I guess a question and a clarification. I guess maybe, Scott, just can you give us a little unpack Q4 a little bit more, specifically Coach in North America and China expectations that are embedded in that quarterly guide. And then I just wanted to make sure I understand. So when you have said the double-digit accretion on the deal for some time. I guess what I'm trying to understand is, is that a year one number? I mean I think we all know that since the deal went through. I think that company's EBITDA, at least on the Street estimates have been cut 30%, 40%. So is that more of a multiyear accretion expectation? Or is that a year one double-digit accretion number that you guys are kind of talking to. Just trying to understand more. Thank you.

Yes. Sure, Ike. Maybe I'll start with the second, just to knock that one out. It obviously depends on the timing of when we close. But we're talking about a first year accretion. There is seasonality in the business, and there's some variability there. But yes, on a full year basis, we expect that double-digit EPS if you look at the calendar year. What gets a little tricky is when you close and where we're at in our year. But if you look at a 12-month period, that duration, that's what we're speaking to. And as it relates to what's in the guide, I think you asked about China and Coach and -- so first of all, remember, in the second half, this has been a strange quarter-by-quarter, if you think about China. So in Q2, we were up against the COVID compares. We had really high growth. In the back half, we're up against rein spending, which puts pressure on the China business. So if you look at Q4, it's in the area of down double-digits from a China standpoint year-on-year. But let me remind you, for the full year we're growing at a low single-digit rate, even with all that noise in China for the full year. And as it relates to Coach, maybe I'll throw it over to Todd to comment on Coach.

Good morning. Thanks, Scott. Again, we feel very good about where we're at Coach. As you saw this quarter, we delivered our highest gross margin in almost 20 years. And we see continued growth. We're not chasing the last dollar. We're being very disciplined and prudent. But we're growing with the people we want to grow with in North America, Joanne mentioned, we grew 800,000 new consumers, 60% are young, Gen Z and millennials. And what's exciting about that is that is the future fuel for sustainable long-term growth. So I'm pleased where we're at. I'm pleased with what we're going to deliver in the year in total and how -- and what it means for our future.

Great. Thank you.

We'll take our next question from Matthew Boss of JPMorgan.

Great. Thanks. So Joanne, could you elaborate on the progression of North America demand, the Coach brand, maybe as the third quarter progressed and more recent trends that you've seen in fourth quarter to date, And then, Scott, to your bottom line confidence, could you speak to the drivers of the roughly 200 basis points gross margin expansion in the fourth quarter and just runway for operational gross margin multiyear?

Sure. I'll kick it off with an overview of North America, and it's really a continuation of what we've been seeing in the market. The consumer is being more choiceful despite some positive factors in the market, certainly, the labor market is a positive in the market. We do see consumer confidence is low in North America, likely impacted by sticky inflation. And so we are seeing an overall more cautious consumer. But in that context, we're seeing innovation continue to win, and Coach has been doing a phenomenal job at delivering innovation. And we're being quite disciplined in terms of how we manage our business for the long term and our expectations for the business to reflect that. Where we're meeting the high bar, we're winning. We're driving higher gross margins. As Todd just mentioned, highest gross margin in nearly two decades. We're driving higher AUR. We're delivering the innovation, and we're acquiring more new consumers to brands. And those new consumers are transacting at higher AUR and higher gross margin. As we see the business unfolds, we're planning prudently to continue to build our brands for the long term. And then maybe for the second part of your question, Scott, pass it to you.

Scott, you're on mute, I think.

Thank you, Todd. Sorry about that. Yeah. So in the fourth quarter, we're going to grow almost 200 basis points in terms of gross margin, I'd say for the full year or two, if you just think about the overall performance, 230 basis points for the full year, which includes about 130 basis points of freight. So that freight benefit, we said, starts to wane as you move through the year, but it's still a contributor in Q4. As you think about going forward, as I said in an earlier comment, the gross margin drivers are still intact, right? We are investing in our businesses. We are increasing our marketing investment consistently over time. It's about triple where it was several years ago, and that engagement with the consumer gives us confidence in our ability to continue to get them to both the consumer is in charge. They decide that they continue to vote. In terms of our products and the AUR that comes with that as well as opportunities on the cost side. We see that we have AUC benefits that we're achieving this year, and we see that continuing on a go-forward basis.

Great. Best of luck.

Yes, thanks Matt.

We'll take our next question from Lorraine Hutchinson of Bank of America.

Thanks. Good morning. Joanne, you just discuss the challenging macro environment in North America. Are conditions deteriorating enough to cause you to change your strategy? Would you give up some of this gross margin strength to give some of the value back to consumers and drive sales growth?

Absolutely not. We are and have been really focused on brand building and building our brands and creating emotional connections with consumers. First, we know that the category we play in is both durable and resilient and powers -- the category powers through downturns historically because the consumer has an emotional connection with it, and we see strong growth in the category going forward. And we want to be sure that our brands are well-positioned regardless of the macro environment as strong brands, and that's been our work for the last four years and we're gaining traction. We offer incredible value in the marketplace to consumers, and that won't change. The -- where we represent and how connected consumers are to our brands continues to grow their affinity for our brands continue to grow, and that's where we're investing. That's been -- it's not just about gross margin and the product and the innovation that we're delivering, but it's also about the marketing investments we're making to reach consumers, the investments in digital to reach consumers where we are. And that's the virtuous flywheel that we've been developing, and it's working. So we'll remain committed to it.

Thank you.

We'll take our next question from Brook Roach of Goldman Sachs.

Good morning and thank you for taking our question. As you think about the opportunity for Tapestry to gain share in North America against this challenged macro, can you talk a little bit more about the innovation pipeline you have on the horizon? And how you're thinking about engaging customers between the outlet and the value-focused channels relative to the full-price channels and what you're seeing there currently? Thank you.

Yes. Innovation is winning. That's what I will say, and we're very focused on delivering the innovation that consumers respond to and recognize. It starts with knowing the customer. And again, our direct-to-consumer platform, our data and analytics capabilities and our consumer insights capabilities are what helped fuel this innovation, right? We're staying close to consumers and their behaviors and their preferences change rapidly. They have changed over the last four years, and I expect they'll continue to change. And so we're connecting with consumers, understanding consumers at a deeper level and then building product and experiences that speak to consumers, that's the innovation that wins. And we're doing that exceptionally well at Coach, and maybe I'll pass it to Todd to share some of his insights on innovation.

Thank you, Joanne. I couldn't be more excited with what I see, what we're seeing now both in our stores. But I have the benefit and the privilege of walking through our showrooms and seeing what we're going to deliver nine months from now. And -- what we're seeing is innovation across all price points. We're not just innovating at the top. We're innovating at our value channel, and at our retail channel. And we're doing some really interesting things. We talk a lot about the strength of Tabby. One of the things you're going to see when you visit stores in June, we're going to take Tabby at full price to 100 outlet stores in North America. Because what we recognize is we're spending quite a bit on marketing our image, leaning in on Tabby. Consumers don't always see the difference like we see between a outlet store and a retail store. And with taking those Tabby, they will be sold at full price in outlet because the consumer is coming in with their iPhones and say, "I want this bag" and we want to make sure we deliver what our customers want wherever they shop. And that's what's so exciting. And ultimately, yes, we talk a little bit about the overall backdrop, but we're in an emotional category. And what we've seen, we haven't seen any degradation in consumers at our economic levels. So again, we win when we deliver newness, we deliver a motion when we have purpose-led campaigns. You're seeing that at Coach. This year, we will end over $5 billion. It's the first time in over a decade where Coach has done that. But we're ending at $5 billion in a very healthy, sustainable way. And that's what I feel so good about our future.

Our next question is from Michael Binetti of Evercore ISI.

Thanks for taking our questions here. Congrats on a nice quarter. I have two. I guess, if we think about what's baked into the guidance you just gave us for fourth quarter and some of the dynamics and what it could mean as we look to the second half of the calendar year, Scott, would you mind helping us think through maybe the upside and downside scenarios after your fourth quarter or maybe the puts and takes around the multiyear revenue CAGRs you spoke to at the 2022 Analyst Day in regards to fiscal 2025. And then on the AUR comments that you guys made earlier, I know you mentioned some confidence in the ability to keep driving AURs, handbag AURs, maybe walk us through some of the drivers that you look at to build to that. We've heard, I guess, as earnings season starts and retailers maybe pointing some concerns that the luxury brands have taken too much pricing on handbags and may need to start moderating a bit. Have you seen anything in the marketplace yet? What levers do you think about in your business if you need to kind of defend pricing if you do see that spread to luxury brands has provided a nice umbrella than you've spoken to over the last few years starts to reverse a little.

Yes. Let me speak to the second part of that first, maybe then Scott, talk it to you. As it relates to AUR and margin growth, you've seen us consistently deliver. We've been on this path even -- we started even before the pandemic. And it really starts with understanding customers and what customers value. I mean AUR at the end of the day is a function of what's sold, not what's offered. So we're -- ultimately, it's the consumer's decision you mentioned the top of the market. The top of the market has moved price considerably higher. And in that context, the value that we deliver to consumers is incredibly stronger. And so as we play within the dynamics of this very fragmented market where the consumer has a lot of choice, we have an opportunity to know the consumer better, understand what they value and deliver that value in the form of innovation. And that's what's been driving AUR and our gross margin growth over the last few years. And those are deeply embedded capabilities at Tapestry and that's how we're winning. So that's why we expect to be able to continue to do this. The value that we deliver in the marketplace is incredibly strong. We know our consumers and we can then take those insights and deliver innovation behind it. And then maybe, Scott, over to you.

Yes, sure. Michael, you're probably not surprised. We're not giving any guidance on 2025, right? So I would just repeat a couple of things that I said earlier. First of all, there's agility in the model, it's on display. It has been since the Investor Day and our ability to deliver earnings on a lot of different conditions and difficult backdrop. The other thing I'd say is, we continue to invest in the brands, continue to invest in marketing, but we're also reading and reacting, right? And so I'll give you an example. We talked about in this last quarter, we have made a decision within our brands to spend more on the top of the funnel and less on the bottom of the funnel. That can hurt sales in the short term. You get bottom of the funnel sales, but from the quality of sales and the acquisition of new customers, which you saw 1.2 million in the quarter, about half of which are millennial and Gen Z. That really speaks to confidence in the future, and these are some proof points that help us or give us confidence that we can grow both top line and bottom line in the future.

Thanks a lot, guys. Appreciate it.

Yeah. Thank you.

Our next question is from Oliver Chen of TD Cowen.

Hi. Thanks so much. The Coach gross margin continues to really impress. What are your thoughts longer term? And should you invest more just to make sure you're being proactive about how well you're doing there? And as you think about pricing, it continues to impress as well, what are you seeing with elasticity? And how are you thinking about like-for-like relative to mix, the Tabby momentum is really impressive. Lastly, about the geographies. Would love your thoughts on the China customer relative to US, China has been fairly mixed with some of the macros and housing and traffic being general concerns. Meanwhile, we've seen a linear US customer. Just would love thoughts on that. Thank you.

Todd, do you want to kick us off with the Coach gross margin and your long-term outlook? And then I'll follow up with the -- on the China piece.

Perfect. Thanks. Yeah, we feel good Oliver about our gross margin and the sustainability of our growth margin. Now obviously, this was a not quarter. I want to make sure no one expects every quarter to be 77%, but we like the neighborhood, and we're delivering on an annual basis. And we are investing. I mean, again, when we talk about investing, we're investing in the quality of our product. We're investing in marketing. If you think about it, historically, Coach spend 3% on marketing. We're spending over 8% on marketing today. And as Scott indicated in the last question, we've shifted even more recently, how we're spending that marketing. We're spending more and more on top of the funnel marketing to tell stories, to create more connection with our consumers. We're doing that because we believe in the long-term sustainability and the customer acquisition that, that brings to the brand. In terms of pricing, I mean, we touched on this a little bit, but I feel -- and Joanne touched on this, but I think in terms of AUR, at Coach brand specifically, we feel very good about sustaining AUR growth for four reasons. Again, it goes back to innovation and storytelling, something I've talked about over and over again. A motion always trumps price. Consumers have hundreds of choices. Every day, we win because we connect with them emotionally. Third, traditional European luxury dominate the category. And when we compare our product with that traditional European luxury, the consumer is seeing the value, and that's very important. And lastly, something that Scott always touches on, we're so disciplined in our inventory. We are -- our whole structure, if you think about the last four years, Joanne led this, we reduced our SKU count dramatically, and we leaned in on important family. And that takes a lot of the pressure off that constant churn on fashion. That's what you're seeing with Tabby, that's what you're seeing with Willow, Rogue Rose, we have families that are sustainable, that are emotional that the consumer connects with. Back to Joanne, on China.

Yes. Thank you. And Oliver, related to the consumer in China, like many others, we're seeing macro headwinds. There are -- there is lots of noise in the numbers. Last year, we're lapping shifts in the New Year holiday during the quarter, but also importantly, that post-COVID revenge spending. I do think it is important to note that our outlook for the year continues to expect low single-digit growth for the year in China. So the quarterly flow of that has been quite dynamic. But we still expect growth for the year and our view on the long-term opportunity in China has not changed. And our team -- we have tremendous teams on the ground. We've been in the market, as you know, for two decades, over two decades and our teams are doing an excellent job building our brands and connecting with consumers in this dynamic environment. I was just in the market two weeks ago. I was meeting with teams and our partners in the region. The teams are showing agility and moving with the consumer as their shopping behaviors and preferences shift. And you saw some of our wholesale outperformance in international was related to how our teams are reading where the consumers are moving, and making sure we're showing up and our brands are connecting with consumers where they are. We are seeing consumer desire for our brands continue to be strong and purchase intent in our category is still high with consumers. So we continue to invest in the market and brand building activities to support that long-term potential that we see.

Very encouraging. Thanks. Best regards.

Thank you.

Our next question is from Mark Altschwager of Baird.

Good morning. Thanks for taking the question. So Coach continues to demonstrate its ability to drive stable results despite the choppier macro. So the tools and playbook really seem to be working. So what do you think is holding back Kate at this stage? Is there a wholesale story going on there? And do you think that the success at Coach and the success you're having with younger customers is having an impact on Kate at this point? Thank you.

No, our opportunities with Kate, and I appreciate the question, Mark. At Kate, we are focused on building a stronger brand and a bigger brand. We see tremendous potential in the future for Kate. And we're doing both building the profitability of the brand as well as establishing a stronger brand with our consumers. So in the quarter, you saw us expand gross margin, operating margin and profit versus last year. It exceeded our expectations. So the discipline management of the business remains intact. We're executing with discipline, and that is embedded in our ways of working going forward. So we're focused on increasing the profitability of the brand and from that base, also an opportunity to grow the top line. And in that, we see an opportunity to increase the -- or improve the execution in three areas, and we've talked about this. One is strengthening the core handbag foundation. Coach has 80 years of archives that we're pulling from and really driving. Kate is building those core handbag ideas and the delivering of innovation, you've heard that as a theme at Tapestry, where we're really winning and where we see the customer respond is when we're delivering newness and innovation in our assortments. And that's what we're focused on delivering. And we're increasing that newness and innovation at Kate, where we're delivering that. It's working. And that newness and innovation will grow, as we've mentioned, into fiscal 2025. We're also focused on the omnichannel experience. We launched outlet.com. We have more omnichannel customers, but that seamless experience and driving more emotional marketing. We're talking about shifting our investments into top of funnel. So all the things that Todd just talked about at Coach are things we're applying to Kate. Kate in earlier innings. And we continue to have confidence in the runway that we see ahead for the brand. We're being disciplined about our execution and building the profitability while we continue to execute on the things that will drive and help us achieve that long-term brand ambition.

Thank you. And maybe one more quick one for Scott on fiscal 2025. The agility in the model came up a couple of times today. Is sales growth needed to hit the earnings goals? Just trying to better understand the range of scenarios you're contemplating there? Thanks again.

Yes. So again, I'm not going to get into that level of specificity, but let me be clear, we expect to grow, right? We've got the building blocks in place. We're acquiring consumers that we believe have a strong lifetime value. We're putting the investments in marketing and behind the business, and we've got an innovation pipeline. So we'll come back and give you more soon, but we do expect to grow. That sai, dwe demonstrated this year that even on no growth essentially flat business, we can and have the levers to deliver profitability. So a combination of both those things that give me a lot of confidence. Think about what this model does as it's been remade and the efficiency that we've been talking about as we achieve the growth that we expect to in the future. And this becomes a profit and a cash machine on an even higher level than the commitments that we've made publicly.

[Operator Instructions] We'll move next to Rick Patel of Raymond James.

Thank you. Good morning. Really good control of SG&A. Can you talk about which levers you pulled in the quarter to pare back the growth there and touch on how we should think about OpEx going forward in terms of areas where you see opportunity for better control versus areas you need to make more investments in?

Maybe I'll start. Listen, we continue -- the model really hasn't changed. We continue to invest in our people -- in our people, capability and in marketing. And those are the areas that you see that we invested in the quarter. And we're finding levered really throughout the rest of the P&L, I'd remind you about two-thirds of our rents now have a variable component. And again, we're spending about 9% in terms of marketing. So that's -- that really isn't a change and we've been pretty consistent in the way we're looking at that from a go forward standpoint.

Thanks very much.

Thank you. This does conclude our question-and-answer session. I'd be happy to return the call to Joanne for concluding remarks.

Well, thank you. And thank you for joining us and for your interest in our story, and thank you to our incredible teams around the world who continue to drive our results against the dynamic backdrop. Our disciplined approach to brand building and our commitment to operational excellence were once again on display in the third quarter. We're delivering innovation for consumers and driving profit and earnings growth. I'm confident in our future and the significant opportunity to drive sustainable growth and shareholder returns. Thanks, again, and have a great day.

This concludes Tapestry's earnings conference call. We thank you for your participation.